Ethereum is a platform which stores and executes computer codes, it is not a cryptocurrency. Running and storing smart contracts on ethereum requires storage and computer power. Users must pay for the network computational power and storage which is paid in ether. Ether is the cryptocurrency that fuels Ethereum blockchain, abbreviated as ETH. Like bitcoin, ether is a peer to peer cryptocurrency, but also it is a programmable currency which serves several other purposes.
Ethereum is a blockchain-based open source software platform fueled by ether. Ether is the internal currency of Ethereum blockchain which is used for running softwares on the network. On ethereum blockchain anyone can build, launch and distribute their own decentralized applications and smart contracts. While bitcoin has revolutionized the way we transfer money without the need for a bank, Ethereum has revolutionized the way companies conduct their business without middlemen or centralized institution. Ethereum enables any organization or company to write business agreement in the form of a computer code. These computer codes are called smart contracts. Smart contracts are executed automatically when certain rules and conditions are met. Since smart contracts are computer code that is run on blockchain they run exactly as they are programmed which means there is no room for human error, fraud, third party interference or downtime. Ethereum is much more than a cryptocurrency, not only it moves money peer to peer but it also allows users to program money and keep track of computer programs.